Principles for making and applying the list of concentrated purchase in Vietnam

Principles for making and applying the list of concentrated purchase in Vietnam
Trọng Tín

On September 15, 2024, the Government of Vietnam promulgated Decree 114/2024/ND-CP amending Decree 151/2017/ND-CP guiding the Law on Management and Use of Public Property 2017.

Principles for making and applying the list of concentrated purchase in Vietnam

The development and application of the list of concentrated purchase must adhere to the following principles:

- propertys included in the list of concentrated purchase are adjusted to align with management requirements, purchasing needs, legal regulations, and the organizational capacity of the central purchasing unit.

- The national level list of concentrated purchase applies universally to agencies, organizations, and units under the management scope of ministries, central and local authoritie.

- The ministerial and central authority level list of concentrated purchase applies to agencies, organizations, and units under the management scope of ministries and central authorities; the local level list of concentrated purchase applies to agencies, organizations, and units under the management scope of localities.

- propertys on the ministerial, central authority, and local level list of concentrated purchases must not overlap with those on the national level list of concentrated purchase issued by the Minister of Finance and the Minister of Health.

- Ministers, Heads of central authorities, and Provincial People's Committees shall issue guidelines on the technical standards and estimated price levels of propertys in the list of concentrated purchase that are suitable for the standards, norms, and usage needs of agencies, organizations, and units under their management scope.

The procurement of the following property types is not governed by the provisions of Chapter VI of Decree 151/2017/ND-CP (as amended and supplemented by Decree 114/2024/ND-CP) (hereinafter referred to as Chapter VI):

- Special propertys, specialized propertys at people's armed forces units.

- propertys of Vietnamese agencies abroad.

- propertys purchased from aid, sponsorship funds, and funds for programs and projects using foreign capital where the donors have procurement requirements different from those in Chapter VI.

- propertys purchased under construction investment projects where separating them into individual packages affects the project's coherence or limits the participation of contractors as per the law on bidding.

More details can be found in Decree 114/2024/ND-CP, which comes into force in Vietnam from October 30, 2024.

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